First, some notes that apply to any stock: a) Many times, a stock will move on non-fundamental reasons. A stock that is 'down' does not automatically mean it is a bad investment and will continue going down'. b) A lower stock price does of course mean 'potentially' better returns if there is a turnaround.
On LMN, the main issue is that fundamentals have not deteriorated to anywhere near the same extent as the stock price (if at all). The move has been entirely based on fear of AI disruption. Since we cannot analyse nor predict 'sentiment' we can only look at fundamentals. It has not reported Q4 yet, but revenue rose 5% last quarter and net income increased 36%. LMN continues to make acquisitions as it has always done. The balance sheet has net cash. It has support from CSU and CSU could always buy back its interest. We have discussed AI in our blog section. We do not know the future but LMN has the ability to use AI rather than be destroyed by it. We do not think embedded customers will simply switch to new offerings. LMN knows its customers and data and this can be an advantage if it uses it right. The sector is stabilizing a bit, but there will be more AI scares, no doubt. If exposed already we do not see a reason to add, but think there is still a long term opportunity here, and potentially a very good bounce on good numbers or a turn in sentiment.